Where's the Profit? My Blueprint for Business SuccessOct 27, 2023
Here are three steps you can take to make your business more profitable.
Ever find yourself lying awake at night wondering, "Where's all the money?" I'm going to share the game-changing steps I took to stop the worrying and start seeing real profits. My mission is to guide restoration business owners like you towards a more profitable and less chaotic business that you can eventually sell for a hefty sum when you're ready to move on.
I understand the all-too-common question: "Revenue's looking good, but where's the profit?" That nagging feeling that keeps you up at night, the endless number crunching in your head, and the mounting pressure . . . I’ve been there. It wasn't an overnight process – it took a couple of years of tweaking and refining my approach, but eventually, everything fell into place, leading to sustained profitability and a lucrative exit from my business.
So, how do you turn things around? Here are the three game-changing steps I took:
Step One: Reworking the Financial Setup
I realized that my financial setup needed a major overhaul. It wasn't just about having the numbers; it was about making them tell a coherent and actionable story. Understanding where your money comes from and where it goes is crucial. It wasn't until I reorganized our Chart of Accounts (COA) that things started to become possible from a reporting standpoint. By reworking my financial setup, I was able to gain better control over my finances and make informed decisions that boosted profitability.
"Revenue's looking good, but where's the profit?"
Step Two: Creating Incentives
One of the keys to my success was creating incentives for my team that aligned with the company's financial goals. When your team has a personal stake in the profitability of the business, they're more motivated to work towards it. This approach encouraged employees to take ownership of their roles and contribute to the company's financial success. Once you're able to have job-level visibility of profitability and you combine that with sharing the target with your team members, it's amazing what becomes possible.
Step Three: Instituting a Disciplined Financial Review Process
Continuous improvement is essential for long-term profitability. I instituted a disciplined financial review process to continually refine and improve the business's profitability. Regularly assessing the financial health of the company (and every individual job) allowed us to identify areas for improvement and make necessary adjustments. This approach not only helped maintain profitability but also ensured the business was on the right path for sustainable growth.
If you're ready to turn the corner and start building a more profitable and less chaotic business, you can book a call with me using this link. I’m dedicated to helping restoration business owners like you create a success story that includes not just good revenue but also substantial profits. Say goodbye to sleepless nights and hello to a brighter, more profitable future.
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